You are using an older browser version. Please use a supported version for the best MSN experience.

Shares rise, Air NZ up despite appeal loss

NZ Newswire logoNZ Newswire 14/06/2017

NZX signage  in Wellington.  (File photo) © Hagen Hopkins/Getty Images NZX signage in Wellington. (File photo) New Zealand shares rose on Wednesday, led by Air New Zealand, Heartland Bank and A2 Milk Co.

The S&P/NZX 50 Index gained 43.91 points, or 0.6 per cent, to 7,483.99. Within the index, 33 stocks rose, 12 fell and five were unchanged. Turnover was $138 million.

Air New Zealand was the best performer, up 4.1 per cent to $3.195.

Australia's High Court has dismissed appeals by Air New Zealand and PT Garuda Indonesia over a 2016 ruling that agreed surcharges on cargo breached that nation's price fixing laws.

"It's again well-supported by the market, even with the appeal being dismissed," said Peter McIntyre, investment adviser at Craigs Investment Partners.

"At this stage no-one's too clear about the costs associated with that decision, but you've seen oil prices move well below that $50 mark and that has such a big impact on Air New Zealand's earnings - they did give that upgrade to the market.''

Heartland Bank rose 3.5 per cent to $1.78, while A2 Milk Co gained 3.2 per cent to $3.53 and Tourism Holdings rose 2.4 per cent to $3.88.

"We've bucked the trend today, had five days of losses now we're in the green,'' Mr McIntyre said.

SkyCity Entertainment Group was the worst performer, down 1.6 per cent to $4.43, while Sanford dropped 1.5 per cent to $6.80 and Contact Energy fell 1.2 per cent to $5.11.

Outside the benchmark index, PGG Wrightson dropped 6.7 per cent to 56 cents. The company warned a wet autumn sapped the performance of its seed and grain business and will weigh on annual earnings.

Eroad gained 3.7 per cent to $1.67. The logistics and fleet management software developer says former senior employee Jeffrey Peter Honey is no longer employed by the company after his sentencing for insider trading on Tuesday.

image beaconimage beaconimage beacon